Trader Joe’s, a well-known supermarket chain in the United States, has taken legal action against a decentralized exchange (DEX) platform called Trader Joe’s, alleging that it violated federal trademark laws.Thank you for reading this post, don't forget to subscribe!
The DEX platform, which operates under the domain name traderjoxies.com, not only shares the same name as the supermarket, but also appears to be trying to take advantage of the supermarket’s established brand and reputation, according to recent reports.
US supermarket giant clashes with Trader Joe’s
Trader Joe’s has gained popularity in the digital sphere by initially launching on the Avalanche (AVX) network and later expanding its presence to the BNB chain, Arbitrum (ARB), and Ethereum (ETH).
It currently holds over $77 million worth of tokens across various chains and in September alone it processed transactions amounting to $25 million.
However, its success has been overshadowed by a heated controversy regarding the origins of its brand and allegations of fraudulent attempts to misrepresent its origins.
The Trader Joe’s supermarket chain has become increasingly frustrated by its lack of response to requests to stop misuse of its trademarks. As a result, the case escalated internationally, and a complaint was filed with the World Intellectual Property Organization (WIPO) in May 2022 to force the crypto entity to give up its domain name.
Additionally, court documents recently filed in the US District Court for the Central District of California shed light on WIPO’s proceedings. According to these documents, the defendants presented a false story that distorted the true origins of “Trader Joe’s.”
He claimed that the platform was named after the co-founder’s brother, a claim the Trader Joe’s supermarket chain has vehemently denied.
JOE token drops in value amid legal battle
The Trader Joe’s DEX has recently seen notable changes in several important metrics, including changes in trading volume, market capitalization, revenue, and total value locked.
Over the past 24 hours, Trader Joe’s experienced a 1.68% decline in performance. This short-term decline in value has been reflected in the platform’s seven-day performance with a decline of 3.85%.
However, despite these recent setbacks, the DEX has managed to maintain relative stability over 30 days with a slight decline of 1.04%.
According to Token Terminal data, one of the most striking figures is the 180-day performance of the platform, which shows a significant decline of 60.82%.
Nevertheless, when market capitalization is considered, Trader Joe’s DEX boasts a circulating market cap of $90.84 million, indicating its prominence within the DEX ecosystem.
Furthermore, the platform has recently shown a positive trend with an increase of 2.26%. Total Value Locked (TVL) is another important metric used to assess the health and popularity of DEX platforms. Despite recent market volatility, the Trader Joe’s DEX continues to demonstrate a TVL of $78.66 million.
However, it experienced a decline of 4.54%, suggesting a possible change in user participation and liquidity within the platform.
Finally, trading volume, an essential measure of a platform’s activity, has seen a significant annual decline of 18.45%, amounting to $7.61 billion. This decline in trading volumes raises concerns about trader engagement and participation on DEX platforms.
Featured image from Shutterstock Chart from Tradingview.com